Photo illustration by GeekWire. (Not an actual USPS employee).
The United States Postal Service plans to raise rates for the Parcel Select service used by Amazon, FedEx, and UPS by 9.1 to 12.3 percent, according to a new filing with the Postal Regulatory Commission.
Parcel select is the last-mile service that gets packages across the finish line to customers’ homes. It’s one of several price increases across USPS’s business that will take effect Jan. 27, 2019, if approved by regulators. The financially troubled institution says the “new rates will keep the Postal Service competitive while providing the agency with needed revenue.”
The proposed price hikes come six months after President Donald Trump ordered a review of the USPS’s “expansion and pricing of the package delivery market and the USPS’s role in competitive markets,” among other things. The executive order set up a task force to review the Postal Service’s finances and operations and report back to the president with the goal of creating conditions to “operate under a sustainable business model.”
The USPS is in financial trouble. It reported a decrease of $1.8 billion in revenue in 2017 compared to the previous year, a drop driven largely by a decline in …read more